Rising US Tariffs Threaten Your Profits: Time to Rethink Your Export Strategy
Recent announcements of increased US trade tariffs have sent shockwaves through UK businesses exporting across the Atlantic. With costs rising and margins shrinking, many companies are already seeing sales volumes fall — some by as much as 25%. While the US has not yet imposed tariffs on the UK yet, supply chains can mean you are liable and it is possible yet that tariffs will be placed.
The question now is: what should UK businesses do next?
What’s Happening?
The US has ramped up tariffs on a range of goods, from steel to electric vehicles and food products, as part of broader geopolitical and economic shifts. For many UK businesses, the immediate consequence is clear — it’s now more expensive to sell into the US. With tighter margins and reduced demand, businesses need to evaluate whether their current US export strategy is still viable.
The Key Question: What’s Your Next Move?
If the cost of trading with the US continues to rise, businesses must ask themselves:
- Do we double down in the US and accept lower margins — or do we look at other markets like the EU where costs may be lower?
- Are we up to speed on European trade rules and tax requirements?
- Do we have the right partners to help us navigate cross-border VAT, IOSS/OSS schemes, and indirect tax obligations?
Are we leaning too heavily on tech platforms for compliance without access to experienced tax advisors who can guide our strategy?
Is Europe a Better Bet?
With the UK no longer part of the EU, many businesses have avoided expanding or reduced expansion into Europe due to the perceived complexity of cross-border tax and compliance. However, the cost of trading with the EU is now often lower than with the US — especially if businesses leverage the right partners.
The challenge is that many companies simply don’t know enough about trading into the EU to make an informed decision. Understanding VAT registration, local tax rules, and the OSS (One Stop Shop) scheme can be the difference between unlocking a new growth market or racking up costly compliance errors.
Who Can You Trust to Help You Make the Right Call?
There’s no shortage of tech providers offering automated tax solutions — but very few combine technology with deep tax expertise. Many platforms provide a surface-level service without the experience to advise on the best strategic approach.
This is where speaking to tax advisors with hands-on experience becomes critical. Tax Desk blends smart technology with senior tax professionals who’ve come from firms like KPMG, offering both the tools and the expertise to help businesses:
- Evaluate whether to pivot to Europe or stick with the US.
- Understand the true cost of cross-border trading.
- Navigate VAT, OSS, and indirect tax requirements.
- Build a tax strategy that supports long-term growth and scale.
What Should You Do Next?
If you’re seeing margins shrink and sales fall, it’s time to challenge your assumptions.
- Are you confident in your US export strategy?
- Do you know enough about trading into Europe?
- Could a strategic shift into the EU protect your margins and unlock new growth?
- Do you have access to expert advice to guide your decision?
Tax Desk can help you explore your options and build a smarter tax strategy that works for your business — not just for compliance, but for growth.
If you’re unsure what the new tariffs mean for your business or have any doubts about trading compliantly book a free call with us today.
